New York, NY – Global hedge funds achieved impressive gains of 2.2% in June, thanks to a surge in artificial intelligence-related stocks and the gradual easing of the banking crisis, according to data provider HFR. As we reach the halfway point of the year, hedge funds have added a promising 3.45% to their investors.
“Hedge funds surged in June, with substantial growth equity exposures, particularly in the field of artificial intelligence. While these dynamic exposures were the driving force behind the gains, the overall industry performance was strong across-the-board,” stated Kenneth J. Heinz, the president of HFR.
Out of the four categories tracked by HFR, equity hedge funds were the top performers in June and in the year overall, with gains of 2.94% and 5.55% respectively, as they bet on rising and falling stocks. However, despite the positive performance, equity hedge funds were unable to outperform the impressive 16.9% soaring growth of the S&P 500 index in the first half of 2023.
Macro hedge funds experienced a challenging year with a 0.47% decline and the ability to recover some losses in June with a 1.47% gain. These funds were greatly affected by the banking crisis in March, which caused significant volatility in the market.
Meanwhile, event-driven hedge funds, including those focused on shareholder activism and merger and acquisition betting, experienced gains of 2.99% in the first half of the year and 2.78% in June.
Relative value strategies, which involve trading asset price dispersion, ended June with a 2.66% gain for the year and a 0.9% increase for the month.
Carolina Mandl, reporting from New York, explains that despite a challenging beginning of the year for hedge funds in the context of the banking crisis, June’s performance showed positive signs of recovery and growth. With the banking crisis gradually becoming more manageable, hedge funds are poised for a potentially lucrative second half of the year.
Editing by Chris Reese and Stephen Coates
Credit: The Star : Tech Feed
